Posting a salary range below market rate drives away the strongest candidates, because they know what the market pays within days and simply don't apply. At MJL Recruiting & Consulting we help clients set a realistic compensation range with real market data before a search launches, not after months of low-quality applicants.
A job description goes out for a Senior Software Engineer. Detailed. Impressive. The kind of role that would attract exceptional candidates. Then the salary range appears: $85,000-$95,000.
For a senior engineer. In a major metro. Today. And everyone in the industry quietly closes the tab.
Why do below-market salary ranges hurt hiring?
This is one of the most persistent, and most damaging, patterns in professional services and technology hiring right now. Companies spend thousands on recruiting infrastructure, job boards, and employer branding, then offer compensation that's 20-35% below market rate, and wonder why they're struggling to close candidates.
Do candidates know what the market pays?
Yes. Here's the hard truth: your candidates know what the market pays. Between LinkedIn Salary, Glassdoor, Levels.fyi, and their own professional networks, they know within days of your posting whether the range is competitive.
Who applies when the salary range is too low?
When the range doesn't match reality, the best candidates, the ones with options, don't waste their time applying. What's left in your pipeline are the candidates with the fewest alternatives, not the strongest fit. You end up interviewing people who are desperate rather than people who are the best available for the role.
Compensation transparency isn't just a nice-to-have anymore. It's a fundamental signal of how much you actually value the role you're hiring for.
What should you do if your budget can't match the market?
If your budget genuinely can't match the market, that's a real conversation worth having with leadership before the search starts, not after four months of low-quality applicants.
Starting the process with numbers that don't reflect market reality costs everyone time: yours, your hiring manager's, and every candidate who applied in good faith based on a range you knew wasn't realistic.
Frequently asked questions about salary ranges in job postings
What happens when a job posting's salary range is below market? MJL Recruiting & Consulting sees the strongest candidates, the ones with options, skip applying altogether. What's left in the pipeline are candidates with the fewest alternatives, not the strongest fit.
How do candidates know if a salary is competitive? MJL Recruiting & Consulting finds that candidates check LinkedIn Salary, Glassdoor, Levels.fyi, and their own professional networks. They usually know within days of a posting whether the range is competitive.
How far below market are many job postings? MJL Recruiting & Consulting regularly sees professional services and technology postings offer compensation 20-35% below market rate, even after companies spend heavily on recruiting tools and employer branding.
What if our budget can't match market rate? MJL Recruiting & Consulting recommends having that conversation with leadership before the search starts, not after months of low-quality applicants. A range that doesn't reflect market reality wastes everyone's time, including candidates who applied in good faith.
Getting the compensation range right before a search launches is one of the first things we help clients nail down. See how our retained search process starts with real market data →